Procedure for Denationalization and Privatization of State Property in Turkmenistan

BUSINESS TURKMENISTAN
Procedure for Denationalization and Privatization of State Property in Turkmenistan
Privatization of state property is the transfer of state-owned property into the ownership of individuals and (or) non-state legal entities.

The Law of Turkmenistan “On the Denationalization and Privatization of State Property” establishes the legal, economic and organizational basis for the denationalization and privatization of state property and is aimed at developing entrepreneurship and creating conditions for attracting investments and developing an effective, socially oriented market economy in Turkmenistan.

Basic concepts

Denationalization is the transformation of a state-owned enterprise into a joint-stock company or an enterprise of another legal form, the founder of which is the state or one of the founders of which must be the state.

Privatization of state property is the transfer of state-owned property into the ownership of individuals and (or) non-state legal entities.

Legislation of Turkmenistan on denationalization and privatization of state property

The legislation of Turkmenistan on the denationalization and privatization of state property is based on the Constitution of Turkmenistan and consists of the Law of Turkmenistan “On the denationalization and privatization of state property” and other normative legal acts of Turkmenistan.

If an international Treaty of Turkmenistan establishes rules other than those contained in this Law, the rules of the international Treaty shall apply.

Basic principles of denationalization and privatization of state property

The main principles of denationalization and privatization of state property are:

  • equal rights of citizens during denationalization and privatization of state property;
  • implementation of measures of denationalization and privatization on a competitive basis;
  • ensuring social protection of workers during the denationalization and privatization of state property;
  • transparency of denationalization and privatization of state property;
  • ensuring state and public control in the process of denationalization and privatization of state property. 

BT Legal Affairs Department